The new housing program – clarification in regards of the golden visa program
On the 16th of February, the Prime Minister of Portugal, António costa, launched a document called “Mais Habitação that affected the real estate sector.
This “Mais Habitação” program aims to address the current real estate market crisis that Portugal is going through, with the shortage of available houses that has caused price speculation in the most sought after areas.
Among the various new rules, much contested by various sectors linked to the real estate sector and property owners, we find the end of the Golden Visa program and the end of new short term licenses in all Portuguese territory.
Regarding the Gold visas and their relationship with the residential market, our CEO Maria Bravo points out “I think that we are facing a purely political measure, with no clear background data to support the plan that was released so, the only clear impact it will have is, in my opinion, the complete breach of confidence for future investors in Portugal” and reinforces “all this because the golden visa for the residential purposes is no longer in place in cities where the market crisis is more evident and with more speculative prices . Until now, the GV program was only possible, for residential purposes, in regions with low density population in Portugal and the Islands, where I think these will be the most affected by this measure.”
With regards to clients who have ongoing Golden Visa applications, the moment will be to speed up the process as soon as possible, close the deal immediately and summit the application, as the Law is not yet in force.
This law is still under public appreciation until March 10th. Following this dated it should be voted in Parliament, after which it should be taken to the President of the Republic for approval and then published in the Diário da República, and then yes it will become Law.
MB Consulting believes that the Government, and as this is a situation that will have a great impact on investors with ongoing investments, will grant a transition period, probably until the end of 2023, until the program is effectively cancelled. Still, nothing is guaranteed, so all applicants should do the upmost to secure their investment.
Also remembering that if you want to invest in high-density urban areas for GV purposes, the only eligible properties need to have commercial or industrial use.
For further clarifications, our team is at your disposal to help you with your Golden Visa process.